Breaking Year-End and New Year Price Increase Tradition
Louis Vuitton Raises Product Prices by 4-6% on the 2nd
Louis Vuitton abruptly raised prices of major products by 4-6% starting from the 2nd. Luxury brands typically increase prices once a year, usually at the beginning or end of the year or during the wedding season, but recently they have been engaging in multiple rounds of price hikes, known as 'Nth price increases.'
With this price increase, the Louis Vuitton Carryall PM Monogram rose from around 3.4 million KRW to 3.6 million KRW. The Pochette Metis East West Monogram increased by about 6%, from around 3.8 million KRW to 4.1 million KRW. Prices of the Neono? BB Monogram, Marais Epi, and Diane Monogram also rose by 2-5%.
This is Louis Vuitton's first price increase in five months since February. The Neono? BB rose from 2.58 million KRW to 2.74 million KRW in February, and now it has increased to 2.9 million KRW. With two rounds of price hikes, the price has gone up by about 11% this year alone.
Herm?s and Rolex, known for raising prices only once at the beginning of the year, have also implemented two rounds of price increases this year. Herm?s raised product prices in January and then increased the price of the Garden Party bag last month. The Garden Party Canvas (size 30) price rose from 3.2 million KRW to 4 million KRW. In January, they raised prices on footwear products, while last month they only increased prices on some bag items.
Rolex, which has traditionally raised prices once a year at the beginning of the year, raised prices twice this year?in January and June. After raising prices by about 8% in January, they increased prices again by about 5% last month. This price hike is analyzed to be due to rising gold prices.
Earlier, Herm?s raised prices on some footwear products such as the Royal Loafer and Oran in January, followed by a price increase on the Garden Party bag last month. Chanel raised prices on jewelry in January, beauty products in February, and bags in March this year. Gucci, which raised prices four times last year, increased prices by 5-8% last month on some bags, including the Ophidia Medium GG Tote Bag.
The distribution industry expects luxury brands to increasingly adopt the trend of multiple rounds of price hikes by product category and item. For example, if prices were raised on shoes and jewelry in January, a few months later they might increase prices on cosmetics, bags, perfumes, or focus on raising prices on 'steady sellers' among bags first, followed by price hikes on other product categories.
A distribution industry official explained, "Luxury brands that stimulate purchasing desire before price increases should be seen as marketing," adding, "Since demand for luxury goods is solid, this trend is expected to continue."
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